Dell committee gives Icahn’s buyout bid a thumbs down

A special committee setup by Dell’s board to examine Carl Icahn’s proposal to buy the company has found that the investor’s bid is short on funding, Reuters reported. Icahn’s offer countered founder and former CEO Michael Dell and private equity firm Silver Lake Partners’ $24.4 billion buyout proposal. Icahn and Southeastern Asset Management offered to pay a special dividend to shareholders and allow them to keep their stake in the company, however the bid was found to be short $3.9 billion in cash. The investor’s cash allocation did not take into account Dell’s debt, expected cash flow shortages and various other fees relating to the termination of the deal with Michael Dell and Silver Lake. CNET reports that Dell’s board of directors is now encouraging shareholders to vote for Michael Dell and Silver Lake’s offer. The board notes that the deal, which would take the company private if approved, is the “best possible outcome for shareholders.”